Revenue Dept pockets over 5 billion baht from e-service providers

SUNDAY, AUGUST 20, 2023

The Revenue Department of Thailand has reported the successful collection of over 5.01 billion baht in tax revenue from foreign platforms and e-service providers. This reflects a growth of 3.2% compared to last year.

The revenue was amassed over the first nine months of the current fiscal year, which began in October 2022. The overall tax collection during this period reached approximately 1.59 trillion baht.

Winit Wisetsuwannaphum, deputy director-general of the Revenue Department, said this effort to collect taxes from foreign platform providers and e-service providers has led to the registration of more than 144 companies for value-added tax.

The breakdown of the e-service taxes collected in the first three quarters of the 2023 fiscal year is as follows:

• First quarter (October-December 2022): 1.65 billion baht

• Second quarter (January-March 2023): 1.64 billion baht

• Third quarter (April-June 2023): 1.72 billion baht

Simultaneously, the overall tax collected by the Revenue Department in the same nine-month period came in at about 1.59 billion baht. The leading categories of tax collected were:

• Value-added tax: 690.53 billion baht

• Corporate income tax: 478.18 billion baht

• Personal income tax: 314.03 billion baht

The e-service tax encompasses five different formats targeting different types of online businesses, namely:

• E-commerce platforms like Amazon and eBay

• Businesses earning from advertising like Facebook, YouTube, Google

• Intermediary businesses that act as agents for the sale of goods and services, like booking hotels, accommodation, flight tickets, etc.

• Intermediary businesses like ride-hailing and food delivery services that charge fees from merchants.

• Businesses generating income from subscriptions like movie streaming like Netflix, music streaming like Spotify and online gaming.